Currency in HUF
Last close As at 25/03/2023
HUF683.00
▲ −2.00 (−0.29%)
Market capitalisation
HUF204,866m
Research: TMT
4iG closed the acquisition of a 51% stake in Vodafone Hungary on 31 January, via its subsidiary Antenna Hungária, and yesterday announced the new management structure for Vodafone Hungary. The acquisition was originally announced in August 2022 and the sale and purchase agreement finalised on 8 January. 4iG is now the largest fixed broadband and TV provider and second-largest mobile operator in Hungary. The deal is the largest in a series of acquisitions undertaken to build 4iG’s position as a converged telecom operator in Hungary and the West Balkans and the leading IT services provider in Hungary.
4iG |
Completion of Vodafone Hungary acquisition |
Acquisition update |
Telecoms |
2 February 2023 |
Share price performance Business description
Analyst
4iG is a research client of Edison Investment Research Limited |
4iG closed the acquisition of a 51% stake in Vodafone Hungary on 31 January, via its subsidiary Antenna Hungária, and yesterday announced the new management structure for Vodafone Hungary. The acquisition was originally announced in August 2022 and the sale and purchase agreement finalised on 8 January. 4iG is now the largest fixed broadband and TV provider and second-largest mobile operator in Hungary. The deal is the largest in a series of acquisitions undertaken to build 4iG’s position as a converged telecom operator in Hungary and the West Balkans and the leading IT services provider in Hungary.
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/19 |
41.1 |
3.3 |
30.8 |
22.0 |
22.7 |
3.1 |
12/20 |
57.3 |
4.2 |
37.7 |
22.5 |
18.6 |
3.2 |
12/21 |
93.7 |
8.7 |
74.6 |
29.0 |
9.4 |
4.1 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Yesterday 4iG confirmed that via its subsidiary, Antenna Hungária, together with the Hungarian state (represented by Corvinus Nemzetközi Befektetési Zrt), it has closed the sale and purchase agreement with Vodafone Europe BV to acquire a 100% stake in Vodafone Hungary. As originally announced in August 2022, 4iG will indirectly become the majority owner with a 51% stake and Corvinus will acquire 49%. The enterprise value for the deal was HUF660bn (down from HUF715bn when the deal was originally announced), which equates to an EV/EBITDA multiple of 7.1x based on Vodafone Hungary’s EBITDA for year-end 31 March 2022. The company expects synergies to reduce this multiple further, with the potential for business-to-business and business-to-consumer revenue synergies from cross-selling opportunities, full fixed-to-mobile convergence and scale, and cost synergies from infrastructure consolidation. The company also announced management changes relating to the acquisition. 4iG’s current deputy CEO, László Blénessy, has been appointed CEO of Vodafone Hungary; he will be supported by Tamás Tábori, who will become deputy CEO of Vodafone Hungary in addition to his current role as managing director of DIGI. Csaba Thurzó will add the role of deputy CFO of Vodafone Hungary to his role as deputy CFO of 4iG. We intend to reinstate forecasts once 4iG has reported FY22 results at the end of February.
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Research: Metals & Mining
Pan American Silver (PAAS) has reported that its shareholders approved the proposed share issue to acquire all outstanding Yamana Gold shares as part of its recently announced plan of arrangement to buy all non-Canadian assets of Yamana. At the same time, Yamana shareholders voted in favour of the special resolution approving the acquisition by PAAS of all the issued and outstanding shares in the company following the sale of all Canadian assets to Agnico Eagle. The transaction is expected to be completed in Q123 subject to receiving a number of regulatory approvals.
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